It is the list of business sectors prioritized or allowed for investment, replacing the older restrictive Negative Investment List.
Indonesia has shifted from the restrictive Foreign Investment Negative List (DNI) to a more open and investor-friendly Positive Investment List (PIL). This change, introduced under the Omnibus Law, aims to boost foreign investment by clearly listing sectors that are open, prioritized, or restricted. In this article, we explain the key differences between the DNI and PIL, their legal basis, and how foreign investors can benefit from the new regime.
Foreign investors entering the Indonesian market generally operate through a Foreign Investment Company (PT PMA). Previously, investment limitations were governed by the DNI, which explicitly restricted or prohibited foreign ownership in certain sectors. However, since the enactment of Presidential Regulation No. 10 of 2021 and as amended by Presidential Regulation No. 49 of 2021, the new Positive Investment List now determines which sectors are open to investment—and under what conditions.
This regulatory shift represents a major evolution in Indonesia’s business environment and significantly affects market entry strategies for foreign entities.
The Negative Investment List (locally known as Daftar Negatif Investasi or DNI) was the official list that classified business sectors based on their accessibility to foreign ownership. Sectors were either:
Under the DNI regime, many sectors like retail, telecommunications towers, construction services, and healthcare were tightly regulated. For instance, foreign investors were only allowed to hold a minority share in sectors such as distribution and warehousing.
The goal was to protect local industries and uphold national interests. However, over time, it became apparent that excessive restrictions were stifling economic growth, innovation, and job creation.
The Positive Investment List (PIL) replaced the DNI in 2021 and is designed to encourage investment rather than restrict it. Rather than listing what’s prohibited, the PIL focuses on sectors that are prioritized, open, or conditionally open for foreign investors.
The PIL is grounded in Presidential Regulation No. 10/2021, as amended by Presidential Regulation No. 49/2021, which was part of the broader Omnibus Law reform agenda. This regulation categorizes investment opportunities into:
These include:
Investments in these sectors may be eligible for fiscal incentives, tax holidays, and ease of licensing through the OSS-RBA system.
| Aspect | Negative Investment List (DNI) | Positive Investment List (PIL) |
| Orientation | Restrictive | Permissive |
| Focus | What is not allowed | What is encouraged |
| Coverage | Closed sectors | Priority and open sectors |
| Investor Experience | Complex and bureaucratic | Streamlined and digitalized |
| Legal Reference | Presidential Reg. No. 44/2016 | Presidential Reg. No. 49/2021 |
The move from a negative to a positive approach aligns Indonesia’s investment policy with international best practices. It sends a strong message: Indonesia is open for business. Foreign investors now enjoy greater clarity, more opportunities, and streamlined licensing processes.
Foreign investors can now own 100% of businesses in many previously restricted sectors, such as:
This openness has made Indonesia’s Positive Investment List a game-changer for multinational companies and venture capital firms.
Some sectors are open to foreign investors, but with certain conditions, such as:
Examples include:
A few sectors remain off-limits to foreign investors, including:
These closures are aligned with Indonesia’s national security, morality, and sustainability priorities.
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Setting up a PT PMA requires adherence to the Positive Investment List. This involves:
Failure to comply may lead to rejection or delays in the investment approval process.
The Online Single Submission – Risk Based Approach (OSS-RBA) is Indonesia’s centralized licensing platform. It categorizes business sectors into low, medium-low, medium-high, and high risk. Licensing requirements vary based on this risk assessment.
For foreign investors, a solid understanding of the PIL and OSS-RBA compliance is essential to ensure a smooth market entry.
As seasoned corporate and investment lawyers, we advise foreign investors to:
Kusuma & Partners Law Firm has helped clients from overseas establish compliant and successful businesses under the Positive Investment List framework.
The transition from the Negative Investment List to the Positive Investment List reflects Indonesia’s strategic pivot to a more open, investor-friendly regime. With fewer barriers and more clarity, now is an ideal time for foreign investors to explore the vibrant Indonesian market.
Looking to invest in Indonesia under the Positive Investment List? Let us guide you through every step—licensing, compliance, PT PMA setup, and beyond. Contact us today for a consultation.
“DISCLAIMER: This content is intended for general informational purposes only and should not be treated as legal advice. For professional advice, please consult with us.”
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